News & Insights

Digital transformation: balancing risk with the need for innovation and growth

A few weeks ago, I moderated a panel at the Emerging Cyber Threats Summit in Sydney which discussed cybersecurity and the future of the digital economy. It was a stimulating discussion with key thought leaders in the cyber security space covering questions such as: what is digital transformation; why do we need to consider cybersecurity as part of strategy; and how do we balance risk innovation?

In my opinion, as organisations continue to leverage digital strategies and modernise their processes, they need to give equal attention to their security approach so they can minimise any risks.

Digitisation embraces technology to transform business operations, making them more agile and innovative. It involves the integration of technology into all areas of the business, resulting in fundamental changes to the way a business operates, delivers value, and interacts with customers.

Is your company undertaking a digital transformation?

If digital transformation isn’t part of your business strategy, you risk falling behind your competitors. However, when it’s a rushed decision, and used as a defence mechanism to compete with digital disruptors and other non-traditional competitors, you risk damaging your business.

This is especially true when it comes to big data which is often a core part of a digitisation strategy. Big data sits at the centre of all business operations and customer relationships, and is required for analytics. It lets organisations mine information and interpret it to reveal patterns, trends, and insights required for business decisions. By its very nature, data is designed for openness, making it attractive to attackers, so measures need to be put in place to ensure it’s secure.

Digitisation also exposes organisations to new challenges from regulators. Information technology and operational risk management is still a relatively new industry, meaning that it continues to evolve and change. New regulations such as the mandatory data breach reporting act can increase the complexity and cost of doing digitally-enabled business.

The good news is that most of this risk can be mitigated or even avoided if it’s considered as part of your strategy from the start.